Industry's exploratory interest in Viet Nam has flagged.
Wood Mackenzie Consultants Ltd., Edinburgh, reports a 55% fall in gross acreage under license off Viet Nam and a steady withdrawal by several upstream players.
Recent high
Wood Mackenzie noted Viet Nam's exploratory drilling level reached an all-time high last year, when a total of 26 offshore wildcat and appraisal wells were drilled.
In the subsequent 3 years, the analyst expects the emphasis to shift further to appraisal, with 19 new-pool wildcats and 17 appraisal wells expected between the start of 1997 and the end of 1999.
"The petroleum industry in Viet Nam is currently becalmed," said Wood Mackenzie, "with a number of key block awards in the Cuu Long Basin still outstanding and poor exploration success in various blocks having resulted in significant relinquishments."
There is a consensus that Viet Nam's geological basins have been well defined, with early waves of exploration in the past 30 years weeding out unprospective blocks.
Now interest in oil-prone Cuu Long Basin is high, with several existing and new players awaiting awards from Blocks 15-1, 9-2, 9-3, 16-1, and 16-2.
Oil, gas status
While a number of gas finds have been made, Viet Nam's gas industry is in embryonic form. BP Exploration Operating Co. Ltd. has been negotiating for development of Lan Tay and Lan Do gas finds, but "progress is slow."
Wood Mackenzie estimates Viet Nam's remaining commercial reserves at more than 1.2 billion bbl of oil and 3.8 tcf of gas. A further 3-4 tcf of gas has been found in the South Con Son basin.
Viet Nam's four producing fields yield 189,000 b/d of oil plus 30 MMcfd of gas for electric power generation. By 2004, says Wood Mackenzie, output could reach 300,000 b/d of oil and 450 MMcfd of gas.
Copyright 1997 Oil & Gas Journal. All Rights Reserved.
